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CNN Live At Daybreak
Bombing in Baghdad; President's Five-Step Plan for Iraq
Aired May 25, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(WEATHER BREAK)
CAROL COSTELLO, CNN ANCHOR: The holiest shrine for Shiite Muslims throughout the world comes under fire in Najaf this morning. A hotel is also targeted by car bombers in Baghdad.
Let's take you live to Baghdad now for more and Guy Raz.
Good morning -- Guy.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
And as you mentioned, that attack in Najaf, it's still unclear what took place there, but we know there was some type of explosion outside the Imam Ali Mosque, right in the heart of Najaf.
Now, as you mentioned, this mosque is the holiest shrine to Shiite Muslims around the world.
Now, initial reports, according to U.S. military officials we've spoken to say, there were no U.S. operations in the area at the time. So, it's still, again, unclear how this blast happened, but a potentially explosive situation happening at one of the holiest shrines for Shiite Muslims around the world.
Now, meanwhile, there has been more violence here in the capital, Baghdad, Carol. A car bomb exploded earlier this morning here, injuring four people, possibly five. And we understand one of those injured was an 11-year-old boy.
That attack took place just steps from a hotel that in the past has been used by journalists and U.N. weapons inspectors. We also understand that it took place quite close to the Australian embassy here in Baghdad.
Now, U.S. coalition officials and U.S. forces are on the scene investigating to find out what exactly took place at that bombing site this morning -- Carol.
COSTELLO: Guy Raz reporting live from Baghdad for us this morning.
Did you watch the president's speech last night? Well, if you did, you heard the president talk about the importance of turning over the Iraqi government to the Iraqis on June 30. In fact, he outlined a five-point plan.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Iraqis are proud people, who resent foreign control of their affairs -- just as we would. After decades under the tyrant, they're also reluctant to trust authority. By keeping our promise on June 30, the coalition will demonstrate that we have no interest in occupation. And full sovereignty will give Iraqis a direct interest in the success of their own government.
(END VIDEO CLIP)
COSTELLO: Now to that five-step plan, it includes handing over authority to a sovereign Iraqi government on June 30, maintaining security with a multinational force under American command until Iraqi security forces are trained. The president wants to continue to rebuild Iraq's infrastructure and encourage more international support for Iraq and move toward a national election in January of 2005.
As you might expect, John Kerry is reacting to the president's address. Kerry says President Bush needs to reach out to U.S. allies -- I'm quoting here. Kerry says, "The president laid out general principles tonight, most of which we've heard before. What's most important now is to turn these words into action by offering presidential leadership to the nation and to the world."
And hot off the president's speech and reaction to it, Bush heads to Youngstown, Ohio, today. He'll visit a health clinic in a small city suffering from job losses.
On the phone with us now, Tom Diemer, who is a political reporter for the "Cleveland Plain Dealer."
Good morning.
TOM DIEMER, "CLEVELAND PLAIN DEALER": Good morning, Carol.
COSTELLO: Youngstown is heavy on Democrats but quirky, because, you know, Congressman James Traficant is from Youngstown. Did the president's speech last night impress these voters?
DIEMER: Well, I think that the president made a serious detail presentation, and I think what he was trying to convey was that things are under control, there is a plan, we're going forward. But it was a rather bleak landscape.
I think it's interesting he goes right off Ohio today, an important election state, and does a domestic issue. He can do more than one thing at a time. And, you know, international one night, and the next day he's off talking about health care centers in Youngstown Ohio. So...
COSTELLO: You know, though, his people are saying this is not a political visit. He's just visiting this clinic, because it's such a success, and it also used federal fund.
DIEMER: Correct. And this is part of his health care plan, these community health care centers or clinics are places where the underinsured and uninsured, they want those folks to go there instead of emergency rooms for their care. It's much more expensive and not as suitable.
But, you know, this is his second visit to Ohio in a month. And although this is a visit as president and not a campaign visit, it's pretty obvious that they're working very hard in this state. And it's not much about Youngstown, I think, as it is about Ohio per se and about three media markets that you can get into there in Youngstown.
COSTELLO: Well, you know, I was looking at editorials from newspapers across the land about the president's speech. And if it was a conservative paper, the speech was tough and patriotic and, you know, kind of a stay-the-course kind of thing. If you looked at more liberal newspapers, you know, he said a lot of the same things he's said before. There was nothing new.
Will Youngstown see it this way, in a partisan way?
DIEMER: I think that Youngstown will see it this way. Youngstown, as you noted at the top, it's a very Democratic area. In Mahoning County, Al Gore won Mahoning County and the adjacent county by something like 52,000 votes four years ago.
The president isn't going to win Mahoning County or Youngstown. He may hold the margin down, and he's going to get a lot of attention by being there. But I think basically, yes, it's a speech that would reinforce those who were for him and not really persuade those who didn't support the policy.
There wasn't a whole lot new in there, and he did say that the troops were going to stay as long as necessary (UNINTELLIGIBLE) to people who want him home.
COSTELLO: Definitely so. And talking about an exit strategy, there wasn't much of an exit strategy in there as far as exactly when the troops will be pulled out of there.
DIEMER: Not at all. I thought it was kind of bleak even. At one point at the beginning of the speech he said that terrorists are likely to be -- quote -- "more active and more brutal. There are difficult days ahead."
So, it was a speech that called for patience and perseverance. And it certainly wasn't an exit strategy or a light at the end of the tunnel type of thing.
So, as far as a place like Youngstown is concerned, you know, he's going to go back and focus on jobs and health care and domestic issues. I don't expect that his speech today will say much about Iraq at all. He'll stay on message with the health care centers, and that's an important issue.
COSTELLO: Tom Diemer from the "Cleveland Plain Dealer." Thank you for joining DAYBREAK this morning.
So, we have now analyzed the president's speech in part. Let's take a look at some numbers.
Let's head live to Princeton, New Jersey, and Gallup Poll editor- in-chief Frank Newport.
And, Frank, I know you want to start with gas prices and who Americans blame for the high price of gas, so get right to it.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Indeed, a question that I'm not sure I have an answer to, so we put it to the American public: The price is up, why?
I see cynicism here, Carol, unfortunately, I guess, for the oil industry. Look at the No. 1 reason Americans say is responsible for those prices way over $2: oil company greed. That's what they told us -- oil companies trying to get higher profits from refineries. Twenty-two percent spontaneously mentioned that.
The second reason, not good news for President Bush. One out of five Americans say it's the war in Iraq that is to blame for the increase in oil prices. Then OPEC manipulation, another cynical response. Supply and demand, pure capitalism. And then more cynicism, 7 percent say it's politics.
So, Americans are pretty steamed about the high prices of gas, and you can see who they're blaming.
Also, by the way, investors, we just announced our May UBS Gallup investor optimism poll. And we asked, how responsible for the bad investment climate right now are oil prices? Look at this: 70 percent say hurting a lot. You see the other numbers.
And, Carol, for investors, energy is the No. 1 reason, the thing that's hurting the economy more so than outsourcing or any of the other kinds of things.
COSTELLO: Interesting.
NEWPORT: A lot of people are upset about energy at this time.
COSTELLO: All right, let's talk about poll numbers for President Bush. Is his speech last night likely to change opinions?
NEWPORT: Well, you know, Bush is actually not doing quite as bad as he did two weeks ago. Here's the question: How are things going in Iraq? And actually, the numbers are bad, no question about that. A majority says that things are not going well. That's 57 percent. But notice that's down just a little from April. So, actually Americans have become slightly more optimistic in the last few weeks. Whether Bush's speech will change that or not, we're going to have to wait and see.
His job approval right now is 47 percent, Carol. That's stabilized. It was 46 two weeks ago, so not good news at all to be below 50 percent, but at least it's not getting worse at this point, Carol.
COSTELLO: OK, we have to ask you this last question: Who's ahead at this point in time? President Bush or John Kerry?
NEWPORT: Dead even. A statistical tie. How many times can I say that? The last three polls in a row among likely voters Bush- Kerry tied. Bush-Kerry tied. Over the weekend, our CNN/"USA Today"/Gallup Poll, guess what? Statistically, Bush and Kerry tied. It's reminiscent of 2000, isn't it, Carol?
COSTELLO: It certainly is. Frank Newport live from Princeton, New Jersey.
Still to come on DAYBREAK, do you have a business? Well, it pays to advertise online. We'll break down the Internet's record-breaking revenue.
And more on this warehouse fire in Georgia going on right now. Smoke can be seen for miles. Evacuations are now under way. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Time for a little business buzz now. Do those pop-up ads drive you absolutely nuts? Well, they're making some investors very happy.
Carrie Lee has more live from the Nasdaq Marketsite.
You know, I ignore those pop-up ads, but apparently a lot of people don't.
CARRIE LEE, CNN FINANCIAL NEWS: There's even some software, Carol, where you can eliminate them altogether. But online ad sales really have been picking up. In fact, they hit a record during the first quarter of this year, a record $2.3 billion. And that's up 4 percent from the fourth quarter of this year; this, according to Interactive Advertising Bureau and PricewaterhouseCoopers.
Also, the first quarter is actually in line with the peak during the Internet bubble era. That annual record set back in 2000 and over $8 billion.
Internet investors certainly are happy, because it means bigger profits for companies like Yahoo! and Google. Yahoo! saw ad revenues up 16 percent, Google up 27 percent in Q1.
Carol -- that's the latest from here.
COSTELLO: Wow! So, do the companies themselves make money off of these pop-up ads?
LEE: They typically do. I mean, a lot of times a company will contract with another place that can have an ad-sharing agreement. It's a very, very lucrative area. And, you know, Google and all of these companies are using technology. Things are getting more sophisticated. They're custom-tailoring ads. So, they're probably even more profitable than they were back in 2000 on average.
COSTELLO: Interesting. Carrie Lee live from the Nasdaq Marketsite.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
A car bomb has exploded near a hotel in Baghdad. Iraqi police tell us four people were killed in that blast. A CNN crew on the scene reports the hotel lobby was badly damaged, along with nearby cars and buildings.
British Prime Minister Tony Blair is expected to face some tough questions on Iraq when he holds his monthly briefing in about 15 minutes. Reports say Blair is planning to send around 3,000 more troops to Iraq.
Fire at a warehouse near Atlanta has forced the evacuation of people within a one-mile radius. These are pictures we're just getting in to our newsroom right now. The warehouse is in Conyers. It's used by a company that makes chemicals for swimming pools. No reported injuries so far.
In money news, ToysRUs filed suit against Amazon.com, claiming the Internet retailer broke an exclusivity contract. The toy giant says they paid Amazon $200 million for the chance to be the exclusive toy seller on the site. Amazon says it did nothing wrong.
In sports, track star Marion Jones met with antidoping officials to hear evidence linking her to steroid use. Her lawyer said the agency doesn't have enough evidence to ban Jones from the Athens Olympics.
In culture, "American Bandstand" is coming back with a twist. Dick Clark is re-launching the show, along with "American Idol" creator Simon Fuller. The twist is viewers will get a chance to vote on which dancers they like the best.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Let's head live to New York to check in with Bill and Soledad to see what's coming up on "AMERICAN MORNING."
And I bet you'll be talking more about the president's speech.
BILL HEMMER, CNN ANCHOR: You know, you're dead-on yet again, Carol.
SOLEDAD O'BRIEN, CNN ANCHOR: Two for two this week.
HEMMER: My! A lot of reaction today. Did the president deliver? What did you want to hear that was not spoken last night? John King is at the White House.
Democratic Senator Joe Biden is our guest today. He was on the air last night, none too happy with what he heard.
Voter reaction from Judy Woodruff. What did the American people hear last night?
We'll get to all of it this morning.
O'BRIEN: Also, Carol, just moments ago you were talking about some violence in Iraq, that explosion in Baghdad; also firefights in Najaf to report this morning. We've got an update on all of that from Harris Whitbeck, who reports to us live from Baghdad.
HEMMER: It's going to be a good thing when the month of May is over weather-wise. It has been a really tough couple of weeks for folks in the Midwest. We'll get you out to Illinois today. We'll continue to follow the latest on the storms there and tornados that we've been talking about just about every day, it seems, for the past two weeks.
So, we'll see you at the top of the hour, OK, Carol?
COSTELLO: I'll be right here watching. Thank you, Bill and Soledad.
Still to come on DAYBREAK, images of war captured through their lenses, so the rest of the world could see.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Frankly, I didn't know what an A-bomb was. It had never been fully explained.
(END VIDEO CLIP)
COSTELLO: The history of World War II photographers, an American display coming up.
(COMMERCIAL BREAK)
COSTELLO: We've been telling you all morning long about the fighting in Najaf. In fact, there have been several explosions near the holiest shrine there. U.S. troops are involved, but we don't know if they're involved with the explosions around that shrine.
We finally have Jane Arraf live on the phone from Najaf to tell us what's going on.
Hello -- Jane.
JANE ARRAF, CNN CORRESPONDENT: Hi, Carol.
U.S. troops here in (UNINTELLIGIBLE) involved in fighting (AUDIO GAP)...
COSTELLO: My goodness. We've just lost Jane. Can we get her back? We cannot get her back, and we apologize for that.
So, I'm going to move along. Hopefully, we'll have Jane. We'll have Jane at some point throughout the day. We promise.
But there is fighting in Najaf. U.S. troops are involved. There have been explosions around that holy shrine. We have Jane back.
Jane -- are you there?
ARRAF: Carol, I am.
And U.S. forces here in Najaf are saying that they were not involved in fighting near the Imam Ali Mosque. That is one of the holiest shrines for Shia Muslims around the world. They say they have not fired mortar, artillery or anything that would account for the apparent damage to that shrine.
Now, there was heavy fighting last night in a few places in Najaf and Kufah (ph), and there are a lot of mortars flying around but, according to the U.S. military, not near the Imam Ali Mosque.
The U.S. base here came under heavy mortar attack, as did the main Iraqi police station. And tanks -- U.S. tanks entering Kufah (ph), Muqtada al-Sadr's stronghold, came under rocket-propelled grenade fire. They managed to retreat, but there was fighting into the night -- Carol.
COSTELLO: So, who is responsible? Who might be responsible for the damage to that mosque?
ARRAF: Carol, it's really hard to describe how chaotic the situation is when the fighting starts. On one side, you have this militia, which is not a very disciplined force by any means -- very resilient. They keep coming out and being killed in huge numbers. They keep coming out and firing rocket-propelled grenades at tanks, 70 tons of steel. They don't have a huge impact, but they do keep ambushing U.S. forces. So, they're using mortars, rocket-propelled grenades. There is artillery flying around.
The U.S., of course, is fighting back, but it's fighting back in specific areas.
And in between all of this, Carol, there are frequent reports that there are other forces, perhaps other militia involved in fighting, the militia loyal to Muqtada al-Sadr. It is at times a confused situation, but there are several elements in there.
U.S. forces are categorical that they have not fired near that mosque last night or today -- Carol.
COSTELLO: All right, Jane Arraf, I'm glad we got you back. Jane Arraf reporting live on the phone from Najaf, Iraq.
During the invasion of Iraq, embedded journalists gave us in- your-face war coverage. Sixty years ago, another war was brought into American homes in a far different but just as emotional way. Those images have come alive again in a new exhibit.
CNN's Brian Todd has more for you from Washington.
(BEGIN VIDEOTAPE) BRIAN TODD, CNN CORRESPONDENT (voice-over): Some pictures, only a few people have seen. Others are so famous, they are emblematic of the great conflict.
During World War II, thousands of newspapers and hundreds of thousands of Americans got their news of what was happening overseas from the Associated Press. These are the images of that long-distance lifeline.
TOM CURLEY, PRESIDENT, ASSOCIATED PRESS: There can be no more dangerous mission for a journalist than covering war in conflict.
TODD: For its new exhibit and book, "Memories of World War II," AP reached into its archive of more than 100,000 photographs to pull fewer than 200 of the most riveting scenes.
From those who prosecuted the war to those who were innocently caught up in it, the unimaginable cost of those years spills out: a Polish girl weeping over the body her sister just killed by German machine gunfire; a mother desperately trying to deliver her children from the rubble of a decimated Belgium village; Hiroshima's devastation.
Max Desfor is a retired AP photographer. He was aboard the USS Missouri to cover the surrender of Japan. He also captured shots of the Enola Gay and crew when it returned from dropping the first atomic bomb.
MAX DESFOR, FORMER AP PHOTOGRAPHER: Frankly, I didn't know what an A-bomb was. It had never been fully explained. Only I knew that it was -- of course, I find out later because I flew over Hiroshima shortly thereafter, and I saw the terrible destruction from one bomb.
TODD: The pictures of soldiers killed in combat deliver the reality: young, robust lives going full speed, cut down in an instant.
Bob Dole escaped that fate on an Italian battlefield in 1945, but at great cost. He's grateful.
BOB DOLE (R), FORMER PRESIDENTIAL CANDIDATE: Some made the ultimate sacrifice. The rest of us were lucky.
TODD: Stephen Cromwell seemed to be everywhere as a U.S. Army Corpsman. June 6, 1944, with the 101st Airborne, first wave on Omaha Beach. The next year on board the USS Missouri -- first when it narrowly escaped destruction from a Japanese kamikaze, then for the surrender.
STEPHEN CROMWELL, WORLD WAR II VETERAN: The war was over. We didn't have to worry about killing people or the chance of getting killed. We were all going to be able to go home. We were going to be able to pick up our lives again and carry on with things that were much more meaningful. War is a terrible experience.
TODD: Brian Todd, CNN, Washington. (END VIDEOTAPE)
(COMMERCIAL BREAK)
COSTELLO: And we just want to update you on this big, huge warehouse fire in Conyers, Georgia. Conyers is about 25 miles east of Atlanta. Take a look at the thick smoke pouring from that warehouse. Inside, we understand they store pool chemicals. People have been evacuated within a mile radius. And, of course, emergency workers are trying to figure out how to put this thing out, or if they're just going to let it burn out itself.
We'll keep you posted on this from Conyers, Georgia.
It is time now, though, to reveal the winner of the DAYBREAK coffee quiz, so you can win this beautiful cup.
On Monday we asked you: What are the two best ways to survive a rip current? The answer: Stay calm, don't fight the current and swim diagonally to shore.
And the second question was: What famous statue has been cleaned and will be unveiled today? And, of course, that was the statue of David.
And the winner of the DAYBREAK mug is Steven DeWitt from Fredericton, Canada. Congratulations, Steven. Your mug is in the mail.
And here is your chance to win a DAYBREAK coffee mug today. Toda's coffee quiz questions: Who will receive honorary knighthood from the British Ministry of Defense? And, the second question: What painter's work once thought to be a fake will be auctioned off in July?
We will name the winner tomorrow morning. The e-mail address: Daybreak@CNN.com. That is Daybreak@CNN.com.
And, of course, if you answer both questions correctly, you could win this beautiful DAYBREAK mug.
COSTELLO: Do we have time for a quick weather update perhaps? No, we don't. So, we're going to join "AMERICAN MORNING" right now.
From the CNN global headquarters in Atlanta, I'm Carol Costello, along with Rob Marciano. Chad will be back tomorrow. "AMERICAN MORNING" starts right now.
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Aired May 25, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(WEATHER BREAK)
CAROL COSTELLO, CNN ANCHOR: The holiest shrine for Shiite Muslims throughout the world comes under fire in Najaf this morning. A hotel is also targeted by car bombers in Baghdad.
Let's take you live to Baghdad now for more and Guy Raz.
Good morning -- Guy.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
And as you mentioned, that attack in Najaf, it's still unclear what took place there, but we know there was some type of explosion outside the Imam Ali Mosque, right in the heart of Najaf.
Now, as you mentioned, this mosque is the holiest shrine to Shiite Muslims around the world.
Now, initial reports, according to U.S. military officials we've spoken to say, there were no U.S. operations in the area at the time. So, it's still, again, unclear how this blast happened, but a potentially explosive situation happening at one of the holiest shrines for Shiite Muslims around the world.
Now, meanwhile, there has been more violence here in the capital, Baghdad, Carol. A car bomb exploded earlier this morning here, injuring four people, possibly five. And we understand one of those injured was an 11-year-old boy.
That attack took place just steps from a hotel that in the past has been used by journalists and U.N. weapons inspectors. We also understand that it took place quite close to the Australian embassy here in Baghdad.
Now, U.S. coalition officials and U.S. forces are on the scene investigating to find out what exactly took place at that bombing site this morning -- Carol.
COSTELLO: Guy Raz reporting live from Baghdad for us this morning.
Did you watch the president's speech last night? Well, if you did, you heard the president talk about the importance of turning over the Iraqi government to the Iraqis on June 30. In fact, he outlined a five-point plan.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Iraqis are proud people, who resent foreign control of their affairs -- just as we would. After decades under the tyrant, they're also reluctant to trust authority. By keeping our promise on June 30, the coalition will demonstrate that we have no interest in occupation. And full sovereignty will give Iraqis a direct interest in the success of their own government.
(END VIDEO CLIP)
COSTELLO: Now to that five-step plan, it includes handing over authority to a sovereign Iraqi government on June 30, maintaining security with a multinational force under American command until Iraqi security forces are trained. The president wants to continue to rebuild Iraq's infrastructure and encourage more international support for Iraq and move toward a national election in January of 2005.
As you might expect, John Kerry is reacting to the president's address. Kerry says President Bush needs to reach out to U.S. allies -- I'm quoting here. Kerry says, "The president laid out general principles tonight, most of which we've heard before. What's most important now is to turn these words into action by offering presidential leadership to the nation and to the world."
And hot off the president's speech and reaction to it, Bush heads to Youngstown, Ohio, today. He'll visit a health clinic in a small city suffering from job losses.
On the phone with us now, Tom Diemer, who is a political reporter for the "Cleveland Plain Dealer."
Good morning.
TOM DIEMER, "CLEVELAND PLAIN DEALER": Good morning, Carol.
COSTELLO: Youngstown is heavy on Democrats but quirky, because, you know, Congressman James Traficant is from Youngstown. Did the president's speech last night impress these voters?
DIEMER: Well, I think that the president made a serious detail presentation, and I think what he was trying to convey was that things are under control, there is a plan, we're going forward. But it was a rather bleak landscape.
I think it's interesting he goes right off Ohio today, an important election state, and does a domestic issue. He can do more than one thing at a time. And, you know, international one night, and the next day he's off talking about health care centers in Youngstown Ohio. So...
COSTELLO: You know, though, his people are saying this is not a political visit. He's just visiting this clinic, because it's such a success, and it also used federal fund.
DIEMER: Correct. And this is part of his health care plan, these community health care centers or clinics are places where the underinsured and uninsured, they want those folks to go there instead of emergency rooms for their care. It's much more expensive and not as suitable.
But, you know, this is his second visit to Ohio in a month. And although this is a visit as president and not a campaign visit, it's pretty obvious that they're working very hard in this state. And it's not much about Youngstown, I think, as it is about Ohio per se and about three media markets that you can get into there in Youngstown.
COSTELLO: Well, you know, I was looking at editorials from newspapers across the land about the president's speech. And if it was a conservative paper, the speech was tough and patriotic and, you know, kind of a stay-the-course kind of thing. If you looked at more liberal newspapers, you know, he said a lot of the same things he's said before. There was nothing new.
Will Youngstown see it this way, in a partisan way?
DIEMER: I think that Youngstown will see it this way. Youngstown, as you noted at the top, it's a very Democratic area. In Mahoning County, Al Gore won Mahoning County and the adjacent county by something like 52,000 votes four years ago.
The president isn't going to win Mahoning County or Youngstown. He may hold the margin down, and he's going to get a lot of attention by being there. But I think basically, yes, it's a speech that would reinforce those who were for him and not really persuade those who didn't support the policy.
There wasn't a whole lot new in there, and he did say that the troops were going to stay as long as necessary (UNINTELLIGIBLE) to people who want him home.
COSTELLO: Definitely so. And talking about an exit strategy, there wasn't much of an exit strategy in there as far as exactly when the troops will be pulled out of there.
DIEMER: Not at all. I thought it was kind of bleak even. At one point at the beginning of the speech he said that terrorists are likely to be -- quote -- "more active and more brutal. There are difficult days ahead."
So, it was a speech that called for patience and perseverance. And it certainly wasn't an exit strategy or a light at the end of the tunnel type of thing.
So, as far as a place like Youngstown is concerned, you know, he's going to go back and focus on jobs and health care and domestic issues. I don't expect that his speech today will say much about Iraq at all. He'll stay on message with the health care centers, and that's an important issue.
COSTELLO: Tom Diemer from the "Cleveland Plain Dealer." Thank you for joining DAYBREAK this morning.
So, we have now analyzed the president's speech in part. Let's take a look at some numbers.
Let's head live to Princeton, New Jersey, and Gallup Poll editor- in-chief Frank Newport.
And, Frank, I know you want to start with gas prices and who Americans blame for the high price of gas, so get right to it.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Indeed, a question that I'm not sure I have an answer to, so we put it to the American public: The price is up, why?
I see cynicism here, Carol, unfortunately, I guess, for the oil industry. Look at the No. 1 reason Americans say is responsible for those prices way over $2: oil company greed. That's what they told us -- oil companies trying to get higher profits from refineries. Twenty-two percent spontaneously mentioned that.
The second reason, not good news for President Bush. One out of five Americans say it's the war in Iraq that is to blame for the increase in oil prices. Then OPEC manipulation, another cynical response. Supply and demand, pure capitalism. And then more cynicism, 7 percent say it's politics.
So, Americans are pretty steamed about the high prices of gas, and you can see who they're blaming.
Also, by the way, investors, we just announced our May UBS Gallup investor optimism poll. And we asked, how responsible for the bad investment climate right now are oil prices? Look at this: 70 percent say hurting a lot. You see the other numbers.
And, Carol, for investors, energy is the No. 1 reason, the thing that's hurting the economy more so than outsourcing or any of the other kinds of things.
COSTELLO: Interesting.
NEWPORT: A lot of people are upset about energy at this time.
COSTELLO: All right, let's talk about poll numbers for President Bush. Is his speech last night likely to change opinions?
NEWPORT: Well, you know, Bush is actually not doing quite as bad as he did two weeks ago. Here's the question: How are things going in Iraq? And actually, the numbers are bad, no question about that. A majority says that things are not going well. That's 57 percent. But notice that's down just a little from April. So, actually Americans have become slightly more optimistic in the last few weeks. Whether Bush's speech will change that or not, we're going to have to wait and see.
His job approval right now is 47 percent, Carol. That's stabilized. It was 46 two weeks ago, so not good news at all to be below 50 percent, but at least it's not getting worse at this point, Carol.
COSTELLO: OK, we have to ask you this last question: Who's ahead at this point in time? President Bush or John Kerry?
NEWPORT: Dead even. A statistical tie. How many times can I say that? The last three polls in a row among likely voters Bush- Kerry tied. Bush-Kerry tied. Over the weekend, our CNN/"USA Today"/Gallup Poll, guess what? Statistically, Bush and Kerry tied. It's reminiscent of 2000, isn't it, Carol?
COSTELLO: It certainly is. Frank Newport live from Princeton, New Jersey.
Still to come on DAYBREAK, do you have a business? Well, it pays to advertise online. We'll break down the Internet's record-breaking revenue.
And more on this warehouse fire in Georgia going on right now. Smoke can be seen for miles. Evacuations are now under way. We'll be right back.
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COSTELLO: Time for a little business buzz now. Do those pop-up ads drive you absolutely nuts? Well, they're making some investors very happy.
Carrie Lee has more live from the Nasdaq Marketsite.
You know, I ignore those pop-up ads, but apparently a lot of people don't.
CARRIE LEE, CNN FINANCIAL NEWS: There's even some software, Carol, where you can eliminate them altogether. But online ad sales really have been picking up. In fact, they hit a record during the first quarter of this year, a record $2.3 billion. And that's up 4 percent from the fourth quarter of this year; this, according to Interactive Advertising Bureau and PricewaterhouseCoopers.
Also, the first quarter is actually in line with the peak during the Internet bubble era. That annual record set back in 2000 and over $8 billion.
Internet investors certainly are happy, because it means bigger profits for companies like Yahoo! and Google. Yahoo! saw ad revenues up 16 percent, Google up 27 percent in Q1.
Carol -- that's the latest from here.
COSTELLO: Wow! So, do the companies themselves make money off of these pop-up ads?
LEE: They typically do. I mean, a lot of times a company will contract with another place that can have an ad-sharing agreement. It's a very, very lucrative area. And, you know, Google and all of these companies are using technology. Things are getting more sophisticated. They're custom-tailoring ads. So, they're probably even more profitable than they were back in 2000 on average.
COSTELLO: Interesting. Carrie Lee live from the Nasdaq Marketsite.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
A car bomb has exploded near a hotel in Baghdad. Iraqi police tell us four people were killed in that blast. A CNN crew on the scene reports the hotel lobby was badly damaged, along with nearby cars and buildings.
British Prime Minister Tony Blair is expected to face some tough questions on Iraq when he holds his monthly briefing in about 15 minutes. Reports say Blair is planning to send around 3,000 more troops to Iraq.
Fire at a warehouse near Atlanta has forced the evacuation of people within a one-mile radius. These are pictures we're just getting in to our newsroom right now. The warehouse is in Conyers. It's used by a company that makes chemicals for swimming pools. No reported injuries so far.
In money news, ToysRUs filed suit against Amazon.com, claiming the Internet retailer broke an exclusivity contract. The toy giant says they paid Amazon $200 million for the chance to be the exclusive toy seller on the site. Amazon says it did nothing wrong.
In sports, track star Marion Jones met with antidoping officials to hear evidence linking her to steroid use. Her lawyer said the agency doesn't have enough evidence to ban Jones from the Athens Olympics.
In culture, "American Bandstand" is coming back with a twist. Dick Clark is re-launching the show, along with "American Idol" creator Simon Fuller. The twist is viewers will get a chance to vote on which dancers they like the best.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Let's head live to New York to check in with Bill and Soledad to see what's coming up on "AMERICAN MORNING."
And I bet you'll be talking more about the president's speech.
BILL HEMMER, CNN ANCHOR: You know, you're dead-on yet again, Carol.
SOLEDAD O'BRIEN, CNN ANCHOR: Two for two this week.
HEMMER: My! A lot of reaction today. Did the president deliver? What did you want to hear that was not spoken last night? John King is at the White House.
Democratic Senator Joe Biden is our guest today. He was on the air last night, none too happy with what he heard.
Voter reaction from Judy Woodruff. What did the American people hear last night?
We'll get to all of it this morning.
O'BRIEN: Also, Carol, just moments ago you were talking about some violence in Iraq, that explosion in Baghdad; also firefights in Najaf to report this morning. We've got an update on all of that from Harris Whitbeck, who reports to us live from Baghdad.
HEMMER: It's going to be a good thing when the month of May is over weather-wise. It has been a really tough couple of weeks for folks in the Midwest. We'll get you out to Illinois today. We'll continue to follow the latest on the storms there and tornados that we've been talking about just about every day, it seems, for the past two weeks.
So, we'll see you at the top of the hour, OK, Carol?
COSTELLO: I'll be right here watching. Thank you, Bill and Soledad.
Still to come on DAYBREAK, images of war captured through their lenses, so the rest of the world could see.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Frankly, I didn't know what an A-bomb was. It had never been fully explained.
(END VIDEO CLIP)
COSTELLO: The history of World War II photographers, an American display coming up.
(COMMERCIAL BREAK)
COSTELLO: We've been telling you all morning long about the fighting in Najaf. In fact, there have been several explosions near the holiest shrine there. U.S. troops are involved, but we don't know if they're involved with the explosions around that shrine.
We finally have Jane Arraf live on the phone from Najaf to tell us what's going on.
Hello -- Jane.
JANE ARRAF, CNN CORRESPONDENT: Hi, Carol.
U.S. troops here in (UNINTELLIGIBLE) involved in fighting (AUDIO GAP)...
COSTELLO: My goodness. We've just lost Jane. Can we get her back? We cannot get her back, and we apologize for that.
So, I'm going to move along. Hopefully, we'll have Jane. We'll have Jane at some point throughout the day. We promise.
But there is fighting in Najaf. U.S. troops are involved. There have been explosions around that holy shrine. We have Jane back.
Jane -- are you there?
ARRAF: Carol, I am.
And U.S. forces here in Najaf are saying that they were not involved in fighting near the Imam Ali Mosque. That is one of the holiest shrines for Shia Muslims around the world. They say they have not fired mortar, artillery or anything that would account for the apparent damage to that shrine.
Now, there was heavy fighting last night in a few places in Najaf and Kufah (ph), and there are a lot of mortars flying around but, according to the U.S. military, not near the Imam Ali Mosque.
The U.S. base here came under heavy mortar attack, as did the main Iraqi police station. And tanks -- U.S. tanks entering Kufah (ph), Muqtada al-Sadr's stronghold, came under rocket-propelled grenade fire. They managed to retreat, but there was fighting into the night -- Carol.
COSTELLO: So, who is responsible? Who might be responsible for the damage to that mosque?
ARRAF: Carol, it's really hard to describe how chaotic the situation is when the fighting starts. On one side, you have this militia, which is not a very disciplined force by any means -- very resilient. They keep coming out and being killed in huge numbers. They keep coming out and firing rocket-propelled grenades at tanks, 70 tons of steel. They don't have a huge impact, but they do keep ambushing U.S. forces. So, they're using mortars, rocket-propelled grenades. There is artillery flying around.
The U.S., of course, is fighting back, but it's fighting back in specific areas.
And in between all of this, Carol, there are frequent reports that there are other forces, perhaps other militia involved in fighting, the militia loyal to Muqtada al-Sadr. It is at times a confused situation, but there are several elements in there.
U.S. forces are categorical that they have not fired near that mosque last night or today -- Carol.
COSTELLO: All right, Jane Arraf, I'm glad we got you back. Jane Arraf reporting live on the phone from Najaf, Iraq.
During the invasion of Iraq, embedded journalists gave us in- your-face war coverage. Sixty years ago, another war was brought into American homes in a far different but just as emotional way. Those images have come alive again in a new exhibit.
CNN's Brian Todd has more for you from Washington.
(BEGIN VIDEOTAPE) BRIAN TODD, CNN CORRESPONDENT (voice-over): Some pictures, only a few people have seen. Others are so famous, they are emblematic of the great conflict.
During World War II, thousands of newspapers and hundreds of thousands of Americans got their news of what was happening overseas from the Associated Press. These are the images of that long-distance lifeline.
TOM CURLEY, PRESIDENT, ASSOCIATED PRESS: There can be no more dangerous mission for a journalist than covering war in conflict.
TODD: For its new exhibit and book, "Memories of World War II," AP reached into its archive of more than 100,000 photographs to pull fewer than 200 of the most riveting scenes.
From those who prosecuted the war to those who were innocently caught up in it, the unimaginable cost of those years spills out: a Polish girl weeping over the body her sister just killed by German machine gunfire; a mother desperately trying to deliver her children from the rubble of a decimated Belgium village; Hiroshima's devastation.
Max Desfor is a retired AP photographer. He was aboard the USS Missouri to cover the surrender of Japan. He also captured shots of the Enola Gay and crew when it returned from dropping the first atomic bomb.
MAX DESFOR, FORMER AP PHOTOGRAPHER: Frankly, I didn't know what an A-bomb was. It had never been fully explained. Only I knew that it was -- of course, I find out later because I flew over Hiroshima shortly thereafter, and I saw the terrible destruction from one bomb.
TODD: The pictures of soldiers killed in combat deliver the reality: young, robust lives going full speed, cut down in an instant.
Bob Dole escaped that fate on an Italian battlefield in 1945, but at great cost. He's grateful.
BOB DOLE (R), FORMER PRESIDENTIAL CANDIDATE: Some made the ultimate sacrifice. The rest of us were lucky.
TODD: Stephen Cromwell seemed to be everywhere as a U.S. Army Corpsman. June 6, 1944, with the 101st Airborne, first wave on Omaha Beach. The next year on board the USS Missouri -- first when it narrowly escaped destruction from a Japanese kamikaze, then for the surrender.
STEPHEN CROMWELL, WORLD WAR II VETERAN: The war was over. We didn't have to worry about killing people or the chance of getting killed. We were all going to be able to go home. We were going to be able to pick up our lives again and carry on with things that were much more meaningful. War is a terrible experience.
TODD: Brian Todd, CNN, Washington. (END VIDEOTAPE)
(COMMERCIAL BREAK)
COSTELLO: And we just want to update you on this big, huge warehouse fire in Conyers, Georgia. Conyers is about 25 miles east of Atlanta. Take a look at the thick smoke pouring from that warehouse. Inside, we understand they store pool chemicals. People have been evacuated within a mile radius. And, of course, emergency workers are trying to figure out how to put this thing out, or if they're just going to let it burn out itself.
We'll keep you posted on this from Conyers, Georgia.
It is time now, though, to reveal the winner of the DAYBREAK coffee quiz, so you can win this beautiful cup.
On Monday we asked you: What are the two best ways to survive a rip current? The answer: Stay calm, don't fight the current and swim diagonally to shore.
And the second question was: What famous statue has been cleaned and will be unveiled today? And, of course, that was the statue of David.
And the winner of the DAYBREAK mug is Steven DeWitt from Fredericton, Canada. Congratulations, Steven. Your mug is in the mail.
And here is your chance to win a DAYBREAK coffee mug today. Toda's coffee quiz questions: Who will receive honorary knighthood from the British Ministry of Defense? And, the second question: What painter's work once thought to be a fake will be auctioned off in July?
We will name the winner tomorrow morning. The e-mail address: Daybreak@CNN.com. That is Daybreak@CNN.com.
And, of course, if you answer both questions correctly, you could win this beautiful DAYBREAK mug.
COSTELLO: Do we have time for a quick weather update perhaps? No, we don't. So, we're going to join "AMERICAN MORNING" right now.
From the CNN global headquarters in Atlanta, I'm Carol Costello, along with Rob Marciano. Chad will be back tomorrow. "AMERICAN MORNING" starts right now.
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